Why Atara Biotherapeutics Shares Are Plummeting Today

Atara Biotherapeutics, Inc. ATRA shares are trading lower after the company said that primary analysis data from its Phase 2 EMBOLD study of ATA188 in non-active progressive multiple sclerosis (PMS) did not meet the primary endpoint of confirmed disability improvement (CDI) by expanded disability status scale (EDSS) at 12 months compared to placebo.

"We are surprised and deeply disappointed with the results of EMBOLD, particularly for the MS patient community which is in urgent need of new treatment options," said Pascal Touchon, President and Chief Executive Officer of Atara.

EMBOLD is a multi-national, randomized, double-blind, placebo-controlled study with an open-label extension to evaluate the safety and efficacy of ATA188 in participants with non-active progressive multiple sclerosis. 

Preliminary safety data showed "no new safety signals in the EMBOLD study," reinforcing the favorable safety profile observed with ATA188 to date.

Atara, however, is actively reviewing the totality of the data, including a 6 percent disability improvement in the treatment arm compared to 33 percent disability improvement observed in the Phase 1 study.

"Following anticipated additional payments and significant double-digit royalties from the recently expanded tab-cel partnership with Pierre Fabre, we are currently well positioned with a cash runway well beyond upcoming milestones," Touchon added.

In the future, the company plans to "significantly reduce its expenses" on ATA188.

Atara said it will further focus resources on advancing its differentiated allogeneic CAR-T pipeline and executing the expanded tab-cel partnership with Pierre Fabre through the Biologics License Application (BLA) transfer. 

These future actions will extend the cash runway beyond Q3 of 2025 meaningfully.

Price Action: ATRA shares are trading lower by 52.93% to $0.5695 premarket on the last check Thursday. 

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